From the Fedex Health Care Enrollment Guide:
"The Health Care Spending Account (HCSA) allows you to set aside money from your paycheck on a pretax basis (that reduces your taxable income) to pay for eligible health care expenses incurred by you and/or your eligible family members. It is a cost-effective way to pay for such items as medical and dental deductibles, copayments and eligible health-related expenses that are not covered by your health plan options."
"The HCSA is beneficial for anyone who has eligible out-of-pocket medical, prescription drug, mental health/substance abuse, dental or vision expenses beyond what their health plan options cover."
“USE IT OR LOSE IT” RULE
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Under this rule, you must use the money in your HCSA for eligible expenses you incur during the calendar year in which the contributions are made."
Pretty straight forward. It's a good deal for most guys at Fedex, as long as you don't over-estimate how much to put into the account. Whatever amount you designate to put into the account during the enrollment period, say $1200 as an example, then 1/12 of that amount is subtracted from your paycheck each month - $100/mo. for our example.
You can spend all $1200 (or whatever amount you designate) on Jan. 1st, and still just have to pay the $100 per month for the rest of the year.
The guide also lists what are allowable and non-allowable expenses. If you have questions, you can look at the guide at
www.fedex.ehr.com.